About TSB
TSB is a retail and commercial bank with a history stretching back 200 years. Today, they operate a network of over 220 branches and offer products and services including current accounts, savings accounts, insurance and credit cards, as well as mortgages.
According to data released by trade association UK Finance in 2023, TSB are the UK’s 10th biggest mortgage lender in terms of amount lent and outstanding balances.
What type of mortgages do TSB offer?
TSB offer a range of mortgages aimed at the following types of customer:
There are exclusive products available for existing customers, people who are purchasing a green property or making eco-friendly home improvements, and those who are applying through a government scheme, such as Shared Ownership or Right to Buy.
Their product line features 2, 3 and 5-year fixed rate mortgages as well as 2-year trackers. There are also 10-year fixes for product transfer and additional borrowing customers.
Interest-only mortgages
TSB offer interest-only as a repayment option as long as the borrower can evidence an acceptable repayment vehicle during the application process.
Repayment vehicles they will approve include:
- Investment ISAs
- Unit Trusts or an OEIC
- Investment bonds
- Stocks and shares
Borrowers can use a combination of different repayment vehicles if they have investments that are spread around, or would struggle to settle the debt with just one.
Lending criteria
The lending criteria for a residential mortgage from TSB is as follows:
- Deposit requirements: Start at 5% of the property’s value but superior rates and deals are available for borrowers who can put down extra.
- Credit history: Will lend to borrowers with some forms of bad credit on their file, such as county court judgements or missed payments, but the most severe issues, including bankruptcies and IVAs, need to have been settled for at least six years.
- Age: The maximum age borrowers can be at the beginning of a TSB mortgage application is 70, or 75 if they are declaring pension income.
- Employment history: Self-employed mortgage applicants will need at least two years’ accounts for the affordability assessment. There are no minimum employment history requirements for applicants in full-time job roles.
What mortgage rates are available?
TSB’s standard variable rate is 8.74% at the time of writing (May 2024). Their mortgage rates are generally competative with other high street banks and lower than that of specialist lenders, but the quality of the deal you are offered will depend on your LTV, the strength of your application and the type of product you choose.
You can compare TSB's latest mortgage rates with their competitors across the market, or have one of our brokers do it for you, below:
